Critical Analysis: LivaNova PLC (LIVN) & Align Technology (ALGN)
LivaNova PLC (NASDAQ: LIVN) and Align Technology (NASDAQ:ALGN) are both mid-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.
Valuation and Earnings
This table compares LivaNova PLC and Align Technology’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|LivaNova PLC||$1.21 billion||2.48||$191.69 million||$0.57||107.88|
|Align Technology||$1.24 billion||11.32||$306.55 million||$2.92||59.97|
Align Technology has higher revenue and earnings than LivaNova PLC. Align Technology is trading at a lower price-to-earnings ratio than LivaNova PLC, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
LivaNova PLC has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Align Technology has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.
Institutional and Insider Ownership
82.4% of LivaNova PLC shares are owned by institutional investors. Comparatively, 81.7% of Align Technology shares are owned by institutional investors. 0.3% of LivaNova PLC shares are owned by insiders. Comparatively, 1.6% of Align Technology shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares LivaNova PLC and Align Technology’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for LivaNova PLC and Align Technology, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LivaNova PLC currently has a consensus price target of $58.00, suggesting a potential downside of 5.68%. Align Technology has a consensus price target of $179.56, suggesting a potential upside of 2.54%. Given Align Technology’s stronger consensus rating and higher probable upside, analysts plainly believe Align Technology is more favorable than LivaNova PLC.
Align Technology beats LivaNova PLC on 13 of the 14 factors compared between the two stocks.
LivaNova PLC Company Profile
LivaNova PLC is a medical device company focused on the development and delivery of therapeutic solutions. The Company’s segments include Cardiac Surgery, Cardiac Rhythm Management, Neuromodulation and Other. The Cardiac Surgery segment is engaged in the development, production and sale of cardiovascular surgery products. Cardiac Surgery products include oxygenators, heart-lung machines, autotransfusion, mechanical heart valves and tissue heart valves. The Cardiac Rhythm Management segment is engaged in the development, manufacturing and marketing of products for the diagnosis, treatment, and management of heart rhythm disorders and heart failure. Cardiac Rhythm Management products include high-voltage defibrillators Cardiac Resynchronization Therapy device (CRT-D) and low-voltage pacemakers. The Neuromodulation segment is engaged in the design, development and marketing of neuromodulation therapy for the treatment of drug-resistant epilepsy and treatment resistant depression.
Align Technology Company Profile
Align Technology, Inc. designs, manufactures and markets a system of clear aligner therapy, intra-oral scanners and computer-aided design/computer-aided manufacturing (CAD/CAM) digital services used in dentistry, orthodontics and dental records storage. The Company operates through two segments: Clear Aligner segment and Scanner and Services (Scanner) segment. The Clear Aligner segment consists of its Invisalign System, which includes Invisalign Full, Teen and Assist (Comprehensive Products), Express/Lite (Non-Comprehensive Products) and Vivera Retainers, along with its training and ancillary products for treating malocclusion (Non-Case). The Scanner segment consists of intra-oral scanning systems and other services available with the intra-oral scanners that provide digital alternatives to the traditional cast models. The Scanner segment includes its iTero scanner and OrthoCAD services.
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